From the definition I've found about net and Gross Total Return indexes:

  • A Net Return Index includes reinvesting dividends after withholding tax

  • A Gross Return Index includes reinvesting dividends without taxation.

After having searched I found ETFs that are marked to follow a Gross Total Return index but they are marked Dist as well so they pay dividends. How is that possible? I'm also not sure if the Gross Total Return ETF reinvest more money than its Net pair why the Net exists? It should be always outperformed by its Gross Total pair.

  • Could you give an example of such an ETF?
    – Flux
    May 14, 2021 at 17:09
  • Regarding Gross Total Return (TR) vs Net Total Return (NTR) indices: an NTR index is more realistic than a TR index because TR indices ignore withholding taxes that would be incurred in real life.
    – Flux
    May 14, 2021 at 17:12


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